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• • Chapter 3. ACQUISITION OF REAL PROPERTY 40. GENERAL. This chapter provides guidance for the acquisition of real property on an ADAP/ FAAP project. Acquisition by negotiation is the process by which the Sponsor makes every reason- able effort to acquire real property by other than condemnation action. Generally, negotiations are to be accomplished by staff or fee negotiators. Fed- eral participation will not be allowed in the cost of property acquired if the negotiations are carried on by the same person who prepared the real estate appraisal or reviewed thereof. Offers by property owners to sell or donate their land will be processed in the same manner as any other property to be acquired. 41. NEGOTIATIONS. a. Negotiation Policy. Negotiation policy, when acquiring real property for a federally assisted air- port project is as follows: (1) The Sponsor will make every reasonable ef- fort to acquire real property by negotiated purchase. (2) The Sponsor must not take an action which is coercive in nature in order to compel agree- ment on price. (3) The Sponsor will make a prompt offer to purchase the property to be acquired for the full amount of the approved just compensa- tion established. (4) When negotiations are initiated, the owner will be provided a written statement con- cerning the proposed acquisition as stated in subparagraph c below. (5) If improvements or fixtures considered as realty are being separately acquired under State law, and the owner of the land in- volved disclaims all interest in improvements of the tenant, a separate written offer will be provided to the tenant. (6) The full amount of the approved just com- pensation will be paid to the property owner or will be made available to him by deposit in court, or otherwise made available, prior to the Sponsors taking physical possession of the property or requiring that the property be vacated by the property owner. (9) (7) As soon as practicable after the date of pay- ment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in the condemnation pro- ceeding, whichever is earlier, the Sponsor will reimburse the owner to the extent it deems fair and reasonable for expenses nec- essarily incurred for: (a) Recording fees, transfer taxes, and similar expenses incidental to convey- ing such real property; (b) Penalty costs for prepayment of any preexisting recorded mortgage en- tered into in good faith encumbering such real property; and The pro rata portion of real property taxes paid by the owner which are al- locable to a period subsequent to the date of vesting title with the Sponsor or the effective date of possession of such real property by the Sponsor, whichever is earlier. The above expenses may be set forth on the closing statement furnished to the property owner. (8) To the greatest extent practical, no person lawfully occupying real property will be re- quired to move from a dwelling or to move his business or farm operation without at least 90 days written notice to vacate in ac- cordance with existing relocation procedures, If the acquisition of only part of a property would leave the owner with an uneconomic remnant, the Sponsor will offer to acquire that remnant regardless of its present or po- tential estimated fair market value or the fact that such parcel may have value to a potential purchaser. (a) An uneconomic remnant is a parcel of land remaining in fee ownership as a result of a partial acquisition of a property that has little or no utility or value to the owner. (b) The size or fair market value of such a parcel is not to be considered as the (c) 19